Rising Gold Prices Drive Unstoppable Surge in Gold Mining Stocks | Lianhe Zaobao
Gold prices have repeatedly hit new highs, driving up gold mining stocks, especially CNMC Goldmine Holdings, which is listed in Singapore, with its stock price rising 459% this year. Analysts predict that gold prices will continue to rise, benefiting from investors seeking safe-haven assets. The spot price of gold broke through USD 4,000 per ounce on October 8, with a year-to-date increase of 53.2%. Market expectations for a loose U.S. monetary policy and a weaker dollar have made gold more attractive
Gold prices have repeatedly hit new highs, driving the stock prices of gold mining companies that have long been undervalued. CNMC Goldmine Holdings, listed in Singapore, has seen its stock price rise by 459% this year, showing impressive performance.
Analysts predict that gold prices will continue to rise, driven by investors turning to safe assets, pushing gold mining stocks even higher.
The spot price of gold broke through the USD 4,000 mark (approximately SGD 5,184) on Wednesday (October 8), with a year-to-date increase of 53.2%, and gold mining stocks have also climbed accordingly.
Zhuo Xing Enterprise Financing Securities Research Director Zeng Xianren stated in an interview with Lianhe Zaobao that the market generally expects gold prices to maintain a strong upward momentum, benefiting CNMC Goldmine.
"The ongoing geopolitical tensions in Europe and the Middle East, coupled with global trade uncertainties, are driving investors to seek safe-haven assets. The anticipated monetary easing cycle by the U.S. Federal Reserve and the weakening of the U.S. dollar also make non-yielding assets like gold more attractive."
He also mentioned that CNMC Goldmine will directly benefit from the rise in gold prices, both in terms of pricing and production.
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Phillip Securities Research Director Zhou Guanlong also believes that CNMC Goldmine's production will increase, and the company will sell gold at the current higher prices, meaning revenue will also surge. "We predict that CNMC Goldmine's production and dividends will rise significantly, driving the stock price up."
Analyst: The Best Time to Invest in Gold Has Not Passed
Globally, several gold mining stocks are also experiencing rapid growth. For example, Newmont Corporation, the largest gold mining company in the world, has seen its stock price soar by 134% this year. Due to the continuous rise in gold prices, Morningstar stock analyst Jon Mills has raised the fair value of this stock by 7% to $62.
Mills stated, "Based on our forecast of the gold futures curve, we expect the average gold price from 2025 to 2027 to reach $3,700 per ounce, higher than the previous forecast of $3,450. We predict that the mid-cycle price in 2029 will be around $2,000 per ounce."
James Luke, a metal fund manager at Schroders, analyzed the performance of the VanEck Gold Miners ETF and found that gold mining companies' stock prices are undervalued.
He pointed out that due to the acceleration of the gold bull market, the cash flow profitability of gold producers has expanded to unprecedented levels. With the fiscal and geopolitical factors driving this bull market continuing, he believes that the best time to invest in gold has not passed, and investor interest is only now truly increasing
